Tillis Blocks Trump’s Fed Nominee Amid Powell Investigation

North Carolina Senator Thom Tillis announced on Sunday that he plans to block President Trump’s nominee for the Federal Reserve, in light of a Justice Department investigation into Chairman Jerome Powell.

This decision from Tillis could make it more complicated for the Senate Banking Committee, which includes 13 Republicans and 11 Democrats (Tillis is among them), to approve any nominations for the Fed.

Tillis stated, “If there was ever any doubt that advisers within the Trump administration were actively pushing to eliminate the independence of the Federal Reserve, there should be no doubt now. What is at stake is the independence and credibility of the Department of Justice.”

He firmly declared, “I oppose confirmation of any Fed nominations, including future Fed chair vacancies, until this legal issue is fully resolved.”

The term for Chairman Powell expires in May, but he could remain on the board until 2028; however, he hasn’t shared any details about his future plans.

On Sunday, Powell confirmed that federal prosecutors have launched a criminal investigation related to the central bank’s headquarters renovation in Washington, D.C. This comes after President Trump expressed frustration over Powell’s handling of interest rates, labeling him “too slow.”

Powell remarked, “No one – certainly not the Fed Chair – is above the law, but this unprecedented action should be viewed in the broader context of the administration’s threats and continued pressure.” He emphasized that the threat of criminal charges stemmed from the Fed setting interest rates based on public service rather than presidential demands.

Massachusetts Senator Elizabeth Warren sided with Tillis, accusing Trump of trying to install a “sock puppet” at the Fed. She criticized Trump’s influence over the Justice Department, implying a dictatorial approach, and previously labeled Powell “dangerous.”

Warren insisted, “This Committee and the Senate should not proceed with any discussion of President Trump’s Fed nominees, including the Fed Chairman.”

While Trump criticized Powell, his White House also put pressure on Fed Director Lisa Cook, demanding her resignation over alleged mortgage fraud, which she described as “unfounded.”

Stephen Millan, an economic adviser to Trump, is expected to see his position expire in January, amidst rumors of resignations from Vice Chairman Philip Jefferson and others on the board.

Key figures reportedly in the running for the Fed chairmanship include National Economic Council Chairman Kevin Hassett, former Fed Governor Kevin Warsh, BlackRock executive Rick Rieder, and current Fed board member Christopher Waller.

Powell is under investigation concerning his statements last summer about the Fed’s overhauls. In an NBC News interview, Trump distanced himself from the investigation, saying, “I don’t know anything about that, but he’s certainly not very good at the Fed, and he’s certainly not very good at building buildings.”

Trump further remarked that the real pressure on Powell should come from the current high-interest rates, calling it the only significant concern for him.

In December, Trump even hinted at legal action against Powell for “gross incompetence” and suggested he might want to fire him for not cutting rates quickly.

During a recent press event with Israeli Prime Minister Benjamin Netanyahu, Trump expressed exasperation over the spiraling costs of the renovation at the Fed’s headquarters, which he claimed may surpass $4 billion, labeling it the highest construction price ever.

Last summer, despite the rising costs, Trump had previously indicated he wouldn’t fire Powell after a joint tour of the renovation site, where initial expenses had already risen from $1.9 billion to $2.5 billion.

The Fed has attributed the increased costs to unforeseen expenses, such as unexpected materials and labor needs, along with contamination issues. Yet, they maintain that the project will ultimately help consolidate operations and save money in the long run.

After the renovation site tour in July, Trump took questions from the press, during which he noted the costs were significantly higher than what was reported, prompting Powell to clarify by pointing out that the President was including previous project costs.